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A. Introduction
NGO Registration in Nepal is a legal process through which a non-profit organization obtains recognition from the concerned government authorities to carry out social, educational, environmental, humanitarian, cultural, or community development activities. A Non-Governmental Organization (NGO) operates independently from the government and primarily works for public welfare rather than profit-making purposes.
With the growing role of NGOs in community development, education, healthcare, environmental protection, and social welfare, understanding the NGO registration process in Nepal, applicable legal requirements, compliance obligations, and available benefits has become increasingly important.
This guide provides a comprehensive overview of how to register an NGO in Nepal, the required documents, governing laws, registration timeline, tax obligations, and exemptions available to NGOs.
B. NGO Registration Procedure in Nepal
The process of registering an NGO in Nepal involves several stages and approvals from different government authorities.
Step 1: Formation of a Founding Committee
To establish an NGO in Nepal, at least seven Nepali citizens are required as founding members. These individuals form an ad-hoc committee responsible for initiating the registration process and preparing the organization’s constitution.
Step 2: Obtain Recommendation from the Ward Office
The proposed NGO must obtain a recommendation letter from the local ward office where the organization intends to establish its office. The ward office reviews the proposed objectives and verifies the local presence of the organization.
Step 3: Obtain Recommendation from the District Coordination Committee (DCC)
After obtaining the ward recommendation, the application is submitted to the District Coordination Committee (DCC). The DCC assesses whether the NGO’s objectives align with local development priorities and social welfare initiatives.
Step 4: Register the NGO at the District Administration Office (DAO)
The formal registration of the NGO takes place at the District Administration Office (DAO). The applicants must submit the prescribed documents, including the constitution (Bidhan) and supporting documents.
Upon verification and approval, the DAO issues the NGO Registration Certificate.
Step 5: Obtain PAN Registration
Following registration, the NGO must obtain a Permanent Account Number (PAN) from the Inland Revenue Department (IRD). PAN registration is essential for tax compliance, banking transactions, financial reporting, and receiving grants or donations.
Step 6: Obtain Affiliation from the Social Welfare Council (SWC)
After DAO registration, the NGO must apply for affiliation with the Social Welfare Council (SWC). SWC affiliation is mandatory for NGOs intending to receive foreign funding, collaborate with international organizations, or implement donor-funded projects in Nepal.
C. Documents Required for NGO Registration in Nepal
The following documents are generally required for NGO registration:
S.N. | Required Documents |
1 | Copy of the ad-hoc committee meeting minutes approving the establishment of the NGO |
2 | Constitution (Bidhan) of the proposed NGO |
3 | Notarized copies of citizenship certificates of all founding members |
4 | Recent passport-sized photographs of all founding members |
5 | Character verification report from Nepal Police for all members |
6 | Office rent agreement or land ownership certificate for the registered office address |
Depending on the district, the concerned authorities may request additional documents during the registration process.
D. Timeline for NGO Registration in Nepal
The complete NGO registration process generally takes approximately one month, provided that all required documents are submitted accurately and approvals are obtained without delay.
The timeline may vary depending on:
- District-specific administrative procedures;
- Completeness of submitted documents;
- Processing time at the Ward Office, DCC, DAO, and SWC;
- Additional clarifications requested by authorities.
E. Benefits and Exemptions Available to NGOs in Nepal
Registered NGOs affiliated with the Social Welfare Council may enjoy several legal and fiscal benefits.
- Income Tax Exemption
Under the Income Tax Act, 2058 (2002), NGOs may qualify for income tax exemption on grants, donations, and funds used exclusively for approved social welfare activities.
To avail of this benefit, the NGO must obtain a Tax Exemption Certificate from the relevant authorities.
- Customs Duty and VAT Exemptions
SWC-affiliated NGOs may receive exemptions from customs duties and Value Added Tax (VAT) on the import of approved goods such as:
- Medical equipment;
- Educational materials;
- Relief and humanitarian supplies;
- Development project equipment.
Such exemptions generally require prior approval from the Ministry of Finance.
- Government Collaboration Opportunities
NGOs affiliated with the SWC may receive priority consideration for:
- Government-funded projects;
- Public-private partnership initiatives;
- Development and social welfare programs;
- Local government coordination activities.
- Foreign Currency Facility
NGOs working with international donors can obtain approval for foreign currency transactions through the Social Welfare Council and Nepal Rastra Bank.
This facilitates the lawful receipt and utilization of foreign grants and project funds.
- Government Support and Subsidies
In certain circumstances, federal, provincial, or local governments may provide support to NGOs through:
- Financial subsidies;
- Land allocation;
- Building usage rights;
- Infrastructure support;
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